UBS has started coverage of South Africa focused platinum producer Lonmin (LON:LMI, JNB:LON) this week, rating it a sell, citing that the firm is signifcantly exposed to major cost pressures. In a note, analyst Ben Davis at the research arm of UBS, gave the stock a £15 price target (current share price £15.24).
Analysts at Deutsche Bank are keeping a ‘buy’ rating on Antofagasta (LON:ANTO) despite this week's cut in the group’s production forecast. At Wednesday’s AGM Anto’s chairman Marcelo Awad revealed that the new Esperanza mine ramp up is behind schedule and consequently the 2011 and 2012 production guidance has been reduced.
Eurasian Natural Resources' (LON:ENRC) latest boardroom changes are a blow to investors' confidence, according to analysts. This week ENRC revealed that four non-executive directors, including Sir Richard Sykes, would be leaving the company. This adds to a long list of board changes in a fairly short space of time and analysts reckon that ENRC hasn’t finished its re-shuffle yet.
African Barrick Gold (LON:ABG) told investors that the Tanzanian government has shown its ongoing commitment to the mining industry. This week the company tried to allay fears of reported changes to the tax regime for mining companies in Tanzania, after the minister for finance presented the 2011/12 Budget to the Dodoma Parliament yesterday.
Deutsche Bank analysts expressed confidence over Rio Tinto (LON:RIO) following a positive visit to the mining giant’s key Pilbara iron ore operation in Australia. The analyst team, led by Rob Clifford, note Rio management’s upbeat projection for expansion of the facility, with the company targeting an increase in production from 225 to 333 million tonnes per annum (Mtpa). The expansion could come in six months ahead of schedule in time for the first half of 2015 and remains on budget.
Angel Mining (LON:ANGM) has raised £2.1 million through an institutional share placing. In total, Angel is issuing 109 million new shares at 2 pence each. The funds have been earmarked for further development work at its two mine development projects in Greenland.
Minera IRL Ltd (LON:MIRL,TSE:IRL) has welcomed statements from Peru's newly elected government about the econmomic future of the country. Minera is a Latin American precious metals mining, development and exploration company.
Newly-listed Strategic Minerals (LON:SML) is beginning a second phase of drilling at its flagship Iron Glen project in Australia to further explore the iron ore there. The firm's goal is to find ore from the deposit in Queensland, that can be fed to China's steel markets. The newly-listed Strategic Minerals saw its share price soar today on Friday as it advanced more than 83 per cent.
Berkeley Mineral Resources (LON:BMR) is set to acquire the remaining tailings at the Kabwe lead-zinc-silver mine in Zambia after completing due diligence. The formal completion of the acquisition agreement is expected shortly. Berkeley will then finalise the design and sourcing of the processing plant to rapidly exploit the Kabwe resources.
GGG Resources (LON:GGG) has extended the offer period for its takeover offer to Auzex Resources (ASX:AZX) shareholders for the second time this week. The company initially made a share-based bid in March, which at that time valued Auzex at A$98 million. Its joint venture partner declined, but GGG decided to press ahead with a hostile bid.
Gold miner Orosur Mining (LON:OMI, CVE:OMI) has successfully completed a private placing it announced this week, raising US$13.5 million before expenses, which will be used to acquire the Talca gold property in Chile. Orosur reported this week that its San Gregorio operation exceeded the firm’s production target of 55,000 ounces for the year to 31 May.
The election of left-wing Ollanta Humala as president in Peru has unreasonably spooked investors and brought miner Metminco's (LON:MNC, ASX:MNC) share price down around 14 per cent since last Friday, says analyst Charlie Long at Singer Capital Markets.
Kryso Resources (LON:KYS) says it remains on target to reach production in the second half of next year. The firm said it had made significant progress in advancing its wholly owned Pakrut mine in Tajikistan and had moved into an "execllent financial position" as it released its results for the year to 31 December 2010 this morning.
Pan African Resources (LON:PAF), the Africa-focused precious metals producer, revealed “encouraging” results from a drilling programme on its 100% owned Barberton gold mining operation in South Africa this week. The drilling on the Bramber tailings dam at the site indicates mineral resource of 148koz at a cut-off grade of 0.5g/tonne. Initial metallurgical test work indicates recoveries of 45% to 55%. Pan African estimates £11m in capex would be needed for a processing plant to treat 1.2 million tonnes of tailings per annum at Barberton for three years.
Red Rock Resources (LON:RRR) gave investors an update on its metallurgical testing for the Macalder gold and silver tailings project in Kenya this week. It revealed that Phase 2 testwork has indicated an average recovery of nominally 65 percent gold, and 10-20 percent recovery for silver. The Macalder tailing’s indicated resource currently stands at 1.42 million tons grading 1.64 grams per ton of gold.
AIM listed companies Afferro Mining (LON:AFF, CVE:AFF) and Iofina (LON:IOF) have appointed new joint brokers today. Afferro has hired RBC Capital Markets, which will join Evolution Securities in providing broking support to the company, while Iofina named Ambrian Partners its new broker, joining Mirabaud.
Cluff Gold PLC (LON:CLF, TSE:CFG) said it has amicably settled the labour dispute at its Kalsaka mine in Burkina Faso. Normal operations resumed on June 7, and the temporary disruptions have not affected the company's annual production guidance of 70,000 ounces from Kalsaka in 2011.
Exploration at Botswana Diamonds’ (LON:BOD) diamond licence in Cameroon has identified possible diamond bearing rock. The company reported that a small diamond was recovered from a sample taken from a stream in the same area where the conglomerate was identified. A follow-up drilling and trenching/pitting programme will now be undertaken to determine the extent of the rocks and whether they are diamondiferous.
Patagonia Gold (LON:PGD) has appointed Philip C. Yee as chief financial officer. Yee is a Canadian chartered accountant and was formerly vice president finance for the Kumtor gold mine in the Kyrgyz Republic, the flagship gold project for Centerra Gold (TSE:CG).
Strategic Minerals (LON:SML) has listed on London's AIM this week and revealed it had raised £750,000 in a placing to help it realise its goal of finding iron ore in Australia to serve the steel markets of China. The firm has assets in Queensland and its 100 percent subsidiary Iron Glen Ltd has a permit around 40km southwest of Townsville.
Brazil focused Horizonte Minerals (LON:HZM) has appointed Bill Fisher to the board as a non-executive director, calling his track record invaluable to the company. Fisher was previously chief executive of Globestar Mining Corp, where he oversaw the development and finance of the Cerro de Maimon project, the Dominican Republic's first copper mine.
Ovoca Gold (LON:OVG) revealed this week it had continued to buy back its own stock. It acquired 25,000 shares for 33.75 pence each on Tuesday, following on from the June 1 purchase of 35,000 at 31 pence.